The German “Teledrive” startup Vay has secured 34 million euros from the European Investment Bank (EIB).
In January, Vay launched one commercial remote control car service in Las Vegas. Now they want to introduce the technology in their own country.
In 2023, the company successfully conducted test drives without a safety driver on public roads in Hamburg. Vay says it has worked closely with authorities to launch a commercial service in the German city.
“This investment will play a crucial role in increasing the trust of EU regulators, partners and consumers in Vay and paving the way for the commercial launch of our services in European cities,” said Thomas von de Ohe, CEO of Vay.
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When users open the Vay app and request a ride, a Electric vehicle comes to pick her up. Just like an Uber – except there's no one in the car.
Instead, it is guided to the pickup location by a remote-controlled driver. The customer then takes the wheel for the journey to their destination. As soon as they leave, a teledriver takes control again.
Teledrivers control the vehicles remotely from a purpose-built station equipped with a driver's seat, steering wheel, pedals and three monitors that provide visibility in front and to the side of the vehicle.
Traffic noises such as emergency vehicles and other warning signals are transmitted via microphones to the teledriver's headphones. This operator could technically be located on the other side of the world. However, most will be near one of Vay's teledrive centers.
For customers, teledriving is seen as a cheaper and more convenient alternative to traditional car sharing. For operators, it could mean the difference between success or failure.
“Long-distance driving can increase profitability in a sector known for its strong margins,” said Justin Spratt, chief business officer at Vay. The company claims its technology can double the useful life of vehicles, thereby increasing sales.
Teledriving is considered a middle ground between conventional cars and autonomous vehicles. which prove much more difficult to implement than the operators had hoped.
“Given recent challenges in the autonomy industry, automotive-grade teledriving can provide an alternative route to safe 'driverless' transport, as a human driver always remains in control,” says von de Ohe previously told TNW.
In December 2023, Vay raised $95 million (€87 million) in a Series B round. The funding signals investor confidence in a technology that could offer a quicker path to market than fully autonomous vehicles.
